I Don't Like Walmart

I don't like Walmart.

No, I'm not joining the majority of folks who think Walmart is evil
for the way it short-changes wholesalers, underpays its employees,
buys from China, or ruins mom-and-pop stores. I'm too pro-business,
too libertarian to toot that horn too hard. (Although to be honest,
sometimes even I think Walmart goes too far.)

When I say, "I don't like Walmart," I say it like a stock expert would
say it. I like Walmart's business model, admire its singular focus on
"everyday low prices," even agree with some of its more draconian
methods for squeezing one more penny to the bottom line. But I don't
think it's a formula that will lead to significant success in the
future.

Great companies don't just keep wringing the towel for one more drop;
they find new ways, new products, new markets. I just don't see
Walmart being able to do this. Their greatest asset -- admirable
focus on getting cheaper and cheaper -- locks them into a way of doing
business that doesn't translate to the kind of innovation required to
be an attractive stock play.

I don't think Walmart's going out of business anytime soon. But I
also don't think it's a good stock to invest in. That's what I mean
when I say, "I don't like Walmart."